Tourmaline Oil (TSE:TOU) Share Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Shares crossed above their 200-day moving average (200‑day MA C$62.43), trading as high as C$66.94 and last at C$66.89 on strong volume.
• Analysts have a consensus Buy rating with an average price target of C$71.25, comprising 3 Strong Buy, 4 Buy and 2 Hold recommendations and several recent target revisions.
• The company pays a quarterly dividend of C$0.50 (C$2.00 annualized, ~3.0% yield) but has a very high payout ratio (294%) and reported a C($1.72) EPS loss last quarter, highlighting sustainability and valuation concerns despite a high market cap and PE.

Tourmaline Oil Corp. (TSE:TOU - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$62.43 and traded as high as C$66.94. Tourmaline Oil shares last traded at C$66.89, with a volume of 2,907,235 shares trading hands.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on TOU. Canadian Imperial Bank of Commerce decreased their price target on shares of Tourmaline Oil from C$71.00 to C$66.00 in a research note on Tuesday, January 13th. ATB Cormark Capital Markets reduced their target price on shares of Tourmaline Oil from C$74.00 to C$73.00 and set an "outperform" rating on the stock in a report on Friday, March 6th. Raymond James Financial upped their target price on shares of Tourmaline Oil from C$69.00 to C$72.00 in a research report on Thursday, March 5th. Royal Bank Of Canada decreased their target price on shares of Tourmaline Oil from C$76.00 to C$72.00 and set an "outperform" rating on the stock in a research report on Friday, March 6th. Finally, Scotiabank upgraded shares of Tourmaline Oil to a "strong-buy" rating in a research report on Wednesday, April 1st. Three equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of C$71.25.

Tourmaline Oil Price Performance

The firm's 50-day moving average price is C$64.11 and its 200-day moving average price is C$62.43. The company has a current ratio of 0.83, a quick ratio of 0.47 and a debt-to-equity ratio of 12.25. The stock has a market capitalization of C$25.97 billion, a PE ratio of 98.37, a PEG ratio of 1.72 and a beta of -0.12.

Tourmaline Oil (TSE:TOU - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The company reported C($1.72) EPS for the quarter. Tourmaline Oil had a return on equity of 1.65% and a net margin of 5.03%.The firm had revenue of C$1.66 billion for the quarter. On average, equities analysts forecast that Tourmaline Oil Corp. will post 5.6809091 EPS for the current fiscal year.

Tourmaline Oil Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 31st were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Monday, March 16th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.0%. Tourmaline Oil's payout ratio is currently 294.12%.

Insider Transactions at Tourmaline Oil

In other news, insider Mike Rose purchased 5,000 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was purchased at an average cost of C$59.45 per share, with a total value of C$297,250.00. Following the purchase, the insider owned 1,500,000 shares in the company, valued at approximately C$89,175,000. This trade represents a 0.33% increase in their ownership of the stock. Also, insider James William Alexander Heard purchased 1,000 shares of the company's stock in a transaction that occurred on Friday, April 17th. The shares were purchased at an average cost of C$59.08 per share, with a total value of C$59,080.00. Following the completion of the purchase, the insider owned 66,476 shares in the company, valued at C$3,927,402.08. This trade represents a 1.53% increase in their position. Over the last ninety days, insiders have purchased 8,500 shares of company stock valued at $527,580. 5.13% of the stock is owned by corporate insiders.

About Tourmaline Oil

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-development-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution, cost management, safety and environmental performance improvement, we are excited to provide shareholders an excellent return on capital and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.

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